Yes, going from "picking on" to "sexual harassment" is indeed a big escalation. In order to justify those charges, especially as a Title IX violation instead of your garden variety teasing/bullying, the totality of the alleged conduct better be pretty darn severe. If not, then the school messed up by filing these charges. I tried to look up the "lots of articles" you mentioned for more facts, or at least the actual allegations, but the facts of the case aren't available, only outrage from parents and attorneys who apparently don't understand Title IX.
Other than the local news outlets in Wisconsin, the only national places where this is being picked up appears to be Fox News, the Daily Mail, and the New York Post. A schoolyard harassment case is certainly not national news, yet this particular case is being promoted by the right wing outlets to further their war against the tyranny of pronouns. The parents and attorneys are also recklessly putting their kids' names out there, now this is on the world wide web forever and ever, without actually completing the investigation. I guess stoking ignorant outrage for the culture war is more important than actually protecting your kids.